New to crypto? Don’t quite understand what’s going on? Want to buy Bitcoin? Hello there! This guide is specifically designed for the newcomers. Learn the basics about Bitcoin and the options to purchase and spend it.
Basic tips for the newcomers
To manage crypto easily and safely, it’s important to understand how it works. We strongly recommend doing additional research on Bitcoin features if you are going to trade or use it. Here are some bullet points to start with:
- Bitcoin is volatile. The price of crypto is bouncing all the time, with significant jumps and drops happening occasionally. Remember that any currency, including BTC, may lose its value or disappear at all.
- Bitcoin is irreversible. So far as Bitcoin is blockchain-based, all transactions are one-time only. It’s impossible to return money via customer support as it works in traditional banks. That’s why you should double-check your each and every deal.
- Bitcoin is transparent. The transactions information is open to all participants. The system doesn’t store sensitive data like banks do.
- Bitcoin is experimental. Despite the eight-year history, Bitcoin remains unusual for the majority of people. Governments still can’t decide how to define and regulate crypto.
Buying BTC in easy steps
Purchasing crypto is really not that complicated as it may seem. The process can differ depending on your location and your country’s law. Below we list the essential steps for buying BTC quickly and easily.
1. Choose a crypto wallet
A wallet refers to an address in a chain where your funds are stored. Each wallet has its public key for transactions (consider it as an email name) and private key for confirming transactions (consider it as an email password).
The easiest way to set up a wallet is to go online. Dozens of services offer crypto storages for free. Online wallets are similar to payment systems like PayPal or Payoneer. To use it, you should just register an account and copy the public address to transfer money to. Remember that web storages are the least secure, so never disclose private keys and double-check all transactions.
Apart from the online wallets, there are other types:
- Desktop/Mobile. In layman’s terms, it’s a software program which keeps addresses on your PC or laptop. Mobile wallets provide simpler access to funds via smartphone or tablet. These wallets are still vulnerable to frauds if the device is connected to the Internet.
- The most secure and expensive type of wallet that works like a flash drive.
You can check all the available wallets for storing Bitcoin on its official site.
2. Choose a merchant
The easiest way to buy Bitcoin is by using online cryptocurrency exchanges as they provide a user-friendly interface, quick transactions, and moderate fees. Among the most famous is CEX.IO. Here’s a brief guide on purchasing BTC via this online exchange service:
- Create an account. Fill in all the required fields including an address and an SSN. Providing personal data is a part of KYC/AML policy and is required by all legit cryptocurrency exchanges.
- Open the BUY/SELL page. Choose the amount of Bitcoin you are willing to buy, decide on the fiat pair, click ‘Buy/Sell’ and confirm the payment method. Usually, debit or credit cards and wire transfers are accepted.
- Check your account. Go to your profile to check the balance. Note that transactions may not be instant.
Apart from the exchanges, there are other ways to buy Bitcoin:
- Peer-to-peer networks. These websites don’t store crypto but match traders with corresponding orders. Always read user comments about a merchant before making a deal.
The examples of such services are LocalBitcoins, BitQuick, Wall of Coins, Paxful.
- Cash deals. Thousands of ATMs and local stores all over the world offer crypto for cash. Buying Bitcoin this way secures your identity but implies a higher price. You can find the nearest service on the websites like CoinATMRadar or LibertyX.
After a purchase is processed, coins are stored on your account on the website. To protect them from hacks, transfer them to your crypto wallet, set up a two-factor authentication, and keep your private keys offline. In case you purchase Bitcoin using cash or peer-to-peer network, coins are transferred directly to your wallet.
Congratulations on owning your first digital coins! What’s next? Explore what you can use BTC for:
- Originally, Satoshi Nakamoto invented Bitcoin as a universal payment system to replace traditional ones like Visa. To send crypto from your wallet to another, you should only know the recipient’s public address.
- Thousands of people trade Bitcoin and other currencies via exchange services. To start trading, choose the exchange with a high volume of trades, a variety of cryptocurrencies, and a solid reputation.
- Though Bitcoin is not so widespread as a payment method, a lot of offline and online merchants accept it. To make a deal, you have to get access to your wallet.
To sum it up
Now you know how to buy Bitcoin and what actions to take to secure your purchase. Use a crypto wallet to store your coins and choose a buying method that works best for you. So far as the crypto industry is constantly evolving, make sure you keep up with the latest news.